Although Island Power has net yet finalised the details of the RFP, it will be sent to both foreign and domestic banks and is seeking advice on loan structures. As yet it has not been determined whether the deal will be a bridging loan or straightforward syndicated loan.
The deal is significant since it will mark the first greenfield project financing in Singapore that is not backed by the government.
The financing will be used to construct a gas-fired 785MW dual-unit combined cycle plant on Jurong Island. The gas will be supplied from South Sumatra, Indonesia under a 15ûyear Gas Supply Agreement (GSA) with ConocoPhilips.
In 2003, Intergen, via Island Power agreed to purchase approximately 15 Bcm of natural gas over the course of the contract from ConocoPhilips, representing SingaporeÆs first wholly private sector gas supply contract.
The loan facility is expected to fund two-thirds of the total project costs, with the remainder being funded via internal funding.
The prospective borrower is hoping to have the financing in place before August. The project will break ground in the fourth quarter with operations scheduled to go online in early 2009.
When online, the plant will be connected to SingaporeÆs high voltage electricity grid and high-pressure natural gas transportation net, with power sales targeting a combination of long-term contracts and the merchant market.
The plant is designed to generate enough electricity to power over three-quarters of a million homes in Singapore.
Island Power, a wholly owned subsidiary of American-based power generator Intergen, was awarded a generation license allowing it to independently own and operate an electricity generating plant of up to 800mw. This makes Island Power SingaporeÆs only privately owned electricity producer (IPP).
Headquartered in Burlington Massachusetts, InterGen operates a total of nine independent power stations in Mexico, the UK, the Netherlands, the Philippines and Australia. Currently it has another generation plant under development in Catadau, Spain.
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